Feed-In Tariff (FIT) Program

A Feed-In Tariff (FIT) program is a form of subsidy to encourage the development of renewable energy. This type of program usually allows homeowners, communities, businesses, and developers to generate renewable energy and sell it at a guaranteed price for a fixed contract term.

The guaranteed price is usually higher than the average electricity prices, and allows the party producing the renewable energy to have certainty regarding their revenues for a fixed period of time. The fixed period is typically more than enough time for the system to fully payback.

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